2/28/12

Ch. 5 - Developing a Global Vision

Almost every country in the world has a group of people that are successful, and are know as the "upper class". Wherever there is an upper class, there is always a demand for high quality products and services. That's why Audi, much like other luxury car companies, can be found almost anywhere in the world. Having a wide range of cars, Audis appeal to many different types of people. For example, a large upper class family might want to buy the Audi Q7, a 7-seat luxury SUV that competes with the Mercedes M Class and the BMW X5. On the other hand, a successful single man or woman might want something a little more flashy, like the Audi R8 supercar or the TT Quattro. In smaller and less wealthy countries, Audi is making strides in money saving methods, like making lightweight cars that consume less gas. They also produces diesel engines for people who are more dependent on diesel than gas. Culturally, Audi doesn't have to make many changes. There aren't many things that a car can do to offend a certain culture or religion. The main cultural difference Audi has to work with the only really which side the steering wheel goes on, as the side on which on drives is different in many countries. In Europe, the European Union dictates how some things must work in the countries that are part of the union. There are restrictions on the amount of CO2 emissions a car can create, which is why Audi's smaller models (A1-A4) thrive in those countries, as they maintain their zippy, sporty feel while being environmentally conscious. 

In terms of how they distribute their products, Audi uses the idea of Contract Manufacturing. Audi constructs in 7 different countries, one of which is Germany, where they have 2 production plants. These are where the cars are put together, but Audi also has the separate components of the car being built all around the world, which would be a form of licensing. In terms of marketing in different countries, Audi has maintained the marketing campaign it has used in America and other European markets, as the confident and stylish air of their commercials goes hand in hand with their sleek design and aggressive power. 

Audi's "second home" according to them is, not surprisingly, China. In a country where finance and business are at the forefront, and people are making more and more money because of their economy, Audi has found a massive market in China. Some of it lends itself to Audi's design, and how it appeals to the modern business man: someone who wants luxury and style but is also conscious of practicality, environmental effects, and manageable prices. Audi has one of the most extensive range of models of any luxury car company, which allows them to be successful pretty much anywhere, as long as there are people who can afford them. 

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